Knowing how to make Money in a Recession starts with knowing The Rules of Wealth
It might be wise to seek investing tips from the financial experts. The question is, who are the financial experts? Colleges, Universities and even the public schools are full of professors and teachers who are teaching students to the best of their ability, but many of them are only teaching the information they have access to. In the same way, these institutions are educating the financial advisors who most of us go to for investing tips and advice on wealth building.
The obvious problem with this is that the knowledge of making money in a recession and the knowledge of wealth building and of creating multiple income streams is not common. It’s closely guarded by the top 1% of the population which has possession of a mind-boggling 99% of the wealth. Would you want that information getting out if you were using it for your own wealth building and for the benefit of yourself and those you love?
Of course not, it’s a part of human nature and our will to survive and to succeed in a very competitive world. This is exactly why you can’t trust the investing tips and financial advice coming from the socially accepted experts. So how can you learn how to make money in a recession and leverage financial crisis include yourself in the next generation of self-made millionaires?
Knowing how to Make Money in a Recession starts with kowing The Rules of Wealth
Knowing how to make money in a recession starts with knowing the rules of wealth, and those rules have not changed since the beginning of time. The flow of wealth is controlled by human behaviors, and once you understand how this works, it becomes the simplest and most valuable information you’ll ever gain access to. Did you know that EVERY world power in history has gone through a predictable pattern when it comes to the flow of wealth?
Did you know that this pattern is determined by a simple and specific set of predictable human behaviors? The first time I heard this, it seemed almost as unbelievable as it was intriguing. Even more amazing has been how the discovery of this knowledge and has changed my entire outlook on wealth building. If you’re ready to gain access to this knowledge and stop listening to the advice of broke “experts,” you could not have picked a better time, because the opportunity is coming fast.
Investment isn’t another world it is part of life and it is life in itself
When the student is ready, the teacher will be available. This is a good disposition to learning about investment. Yes – on investment, so much noise and so much confusion – where do one start from? Good question, every good endeavor must start with oneself. Go out and take stock of them all, great investors that I have known were all men of controlled temperament with mastery over their own emotion and personality.
Are they the best of fellow out there?
Absolutely not, but when they go investing they drill themselves to comply with the rule of the game – investment has rule and it is the ability to abide by this that makes you profits or losses. This therefore calls that one who wants to succeed in making investments would require tough discipline on himself; which is not common with ordinary folks out there.
Investment isn’t another world it is part of life and it is life in itself.
Whatever outcome you have from investment is only a reflection of your personality. Think of staying power, discipline, self-confidence, greed and emotion, they are traits which are more profound and important than investment strategies themselves. The man who masters himself will be able to master any other thing in nature which he put his mind to. Rule your world by firstly having rule over yourself.
Investment is not an anointed area for a few personalities – I believe the market respects no single person. True investment market cannot be manipulated or controlled by one man – but like the ocean as large as it is, each and everyone can have a part to him. The bottom line is that if you can discipline your emotion, you can have a part of the wild world of investment to yourself; and nobody is expected to have all. When one man has it all, it is no longer an investment, it becomes a monopoly.
This implies that those who are making progress are those who abide by the needed rule of the game through controlled temperament. The hardest thing for man to do is to subdue his own self. I have seen people who failed in one thing, what you see them do next without taking stock is rush out to find another venture until they have gone round and round doing so many things. Often their failure is not as a result of the non-yielding of the ventures they tried, the problem usually lies in their poor personality that refuse to learn what it takes.
Failure in life is often as a result of a failed personality. In investment, you will likewise not be spared the rod for negligence of personality. Sit up, find out where you have failed and objectively identify and take care of such. Ability to learn from failure is one good trait of the successful ones.
You don’t need to perfect your personality before making a venture into investment? Personality is perfected in growth; perfection is growth, and there is no other definition. And it is in doing that you get perfected.
Remember that the law of recognition comes before possession. It is easy to deal with an enemy you know than those you don’t know. Be aware of your personal tendency – such as being fearful, greedy and impatient. Often in your investment decision, this three personality trait will play crucial roles in what decision you make, but by recognition and discipline, couple with experience and time, you will learn to master them for profit.
Find out whether you are overly dependent on others for decision or not.
Finally, put it firmly in your mind that the winning investors are those who take charge, they are people with good self-esteem; they are positive and confident personalities. Lack of confidence leads to the death of investment, meaning that the life wire of profitable investment is confidence; and you should not be found in the market when your confidence is down. Take charge and you will be writing your name on the winning side.
Some simple Guidelines to avoid major mistakes in Investing
If you are not sure how to invest money and want to invest to get ahead, don’t start investing until you know some rules of the road. Few things are black and white in the investing world, but you can avoid major mistakes when you invest by following some simple guidelines.
Get the idea out of your head that investing money and outperforming the markets is easy. Few professional investors have consistently done this in the past 10 years; and 2011, 2012, and 2020 will likely be no different. Your objective when you invest should be to earn better than average returns with only moderate risk. To do this you’ll need to invest in stocks, bonds, and perhaps real estate.
Forget about picking your own stocks to invest in unless you intend to make stock picking a part time job. One poor pick can ruin your year. You can’t afford to NOT make money when the stock market has a GOOD year, which is most often the case. Diversification is the key to investing money and participating in the stock market over the long term. The same is true when you invest in bonds. Few average investors can analyze individual bond issues, so they are best off investing in a diversified portfolio of bonds.
Real estate still looked dead in early 2011, but don’t believe that it will never again be a good place to invest money. In the future it is quite likely that 2011 or 2012 will define the bottom in this troubled market, even if (when) inflation and interest rates heat up. When that happens, investing money will be a real challenge for anyone trying to find the single best place to invest. Don’t spend your time or money trying to out-guess the markets and other investors. Instead, put together a diversified and balanced investment portfolio.
How can a beginner invest in stocks, bonds and real estate and at the same time have some money safely tucked away earning interest? You can do this by investing money in just three different mutual funds. Let the professionals pick the stocks and bonds for you by investing in a traditional balanced fund, where about 60% goes to stocks with most of the rest going into bonds. That simple formula has worked for years, so invest most (about 70%) of your investment portfolio there. The other 30% divide equally with half going into a real estate equity fund, and the other half going to a money market fund for safety.
Don’t get distracted when investing money and don’t try to time the markets. Real estate will again come back into favor and interest rates will likely rise in 2011 and/or 2012. When rates go up returns on money market funds will get better. When real estate recovers, you’ll be there. When you invest money in a balanced fund you’ve got stocks and bonds covered. If you invest by the simple guidelines provided here you should be better able to relax. You’ve covered the bases and avoided making major mistakes.
